Self-cert " made up nearly half of all the mortgages offered at the peak of the boom"

Graham_Devon

HAMISH_MCTAVISH wrote: »

There seems to be a lot of confusion between loan categories today.

Fast Tracked mortgages are entirely different to Self Cert.

Yet both are counted as Non Income Verified.

Both, however, pretty much mean the same thing in terms of consequences.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Both, however, pretty much mean the same thing in terms of consequences.

Indeed. Very little change.

The fact that banks were too lazy to verify income for the vast majority of these loans, in no way implies that the mortgagees could not have produced such proof of income.

Much as in your case.....

chucknorris

HAMISH_MCTAVISH wrote: »

Indeed. Very little change.

The fact that banks were too lazy to verify income for the vast majority of these loans, in no way implies that the mortgagees could not have produced such proof of income.

Much as in your case.....

I find it quite shocking how some people can become quite gullible and just believe what they want to hear without challenging the facts. To me it was almost obvious that this thread was based on at best an error.

Wookster

HAMISH_MCTAVISH wrote: »

Indeed. Very little change.

The fact that banks were too lazy to verify income for the vast majority of these loans, in no way implies that the mortgagees could not have produced such proof of income.

Much as in your case.....

Well oddly enough I think the stats were that approximately half the mortgages in arrears are self certified and the other half are people with poor credit history so they are definitely problematic!

Though it fits your myopic view to say otherwise doesn't it!

Pobby

Funny old world ain`t it. The idea of 3.5 times income seemed to work very well for yonks. In my industry there was a magic figure, buy for £100 and sell for £155 plus the vat. Worked a treat before they started mucking about with it in the form of discounting.

As I see it, homes were very affordable back in the late 90`s, based on the old criteria. So what went wrong. You need not answer that.

HAMISH_MCTAVISH

Wookster wrote: »

Well oddly enough I think the stats were that approximately half the mortgages in arrears are self certified and the other half are people with poor credit history so they are definitely problematic!

Though it fits your myopic view to say otherwise doesn't it!

I have no doubt that half the mortgages in arrears were self cert.

But that is completely different to half of self cert being in arrears.....;)

Only 2.87% of mortgages are in arrears.

If self cert really was 50% of the market, and self cert only accounts for half of arrears, that would imply an exceptionally good track record for self cert. Better in fact than I would believe possible.

If however, true self cert (as opposed to mere fast track) only accounted for say 10% of the market in 2007, then the figure of half of 2.87% would seem entirely plausible.

You really didn't think that one through at all, did you wookie?:rotfl:

Wookster

HAMISH_MCTAVISH wrote: »

You really didn't think that one through at all, did you wookie?:rotfl:

I don't see what point you're trying to make Mctittish.

I didn't say half of self certifieds were in arrears, I just pointed out they they are problematic (as are people with poor credit ratings).

Fact is, there will be quite a lot fewer mortgages to go around now and that doesn't bode well for your little world of ever lasting HPI.

Mr_Mumble

HAMISH_MCTAVISH wrote: »

I have no doubt that half the mortgages in arrears were self cert.

But that is completely different to half of self cert being in arrears.....;)

Only 2.87% of mortgages are in arrears.

That's some feat considering 2.97% of self-certs defaulted in 2008. (come on Hamish admit you made a little error here )

HAMISH_MCTAVISH

Wookster wrote: »

Fact is, there will be quite a lot fewer mortgages to go around now and that doesn't bode well for your little world of ever lasting HPI.

There have been a lot fewer mortgages all year.

Self cert, fast track, and all the rest are already pretty much extinct. So banning them now makes no difference.

And even though they have been pretty much unavailable for all of this year, prices have risen by 9% anyway....:beer:

Thrugelmir

HAMISH_MCTAVISH wrote: »

Indeed. Very little change.

The fact that banks were too lazy to verify income for the vast majority of these loans, in no way implies that the mortgagees could not have produced such proof of income.

Agree that little has changed. The banks that lent prudently are still doing so.

The non regulated lenders that lent as much as fast they could with no risk to themselves have long fled the market.

Read the FSA report in full. You may find the answers to your irrevelant posts.